HB68 Alabama 2010 Session

Summary

Primary Sponsor

Robert Bentley

Republican

Session

Regular Session 2010

Title

Income tax, employers creating jobs for unemployed persons, tax deduction authorized, Revenue Department to implement, Reemployment Act of 2010

Summary

The bill would create a 50% income tax deduction for Alabama employers who hire unemployed individuals and retain them for 12 months.

What This Bill Does

It provides a deduction equal to 50% of the employee's taxable income for each qualifying hire. The employee must have been collecting unemployment or have benefits that expired, with the unemployment status certified by the local employment agency. The deduction can be claimed in only one tax year and only after the employee has worked for 12 consecutive months. It reduces the employer’s Alabama income tax and is not refundable or transferable; pass-through owners can receive a pro rata share. The Department of Revenue would set the rules, and the measure takes effect for tax years starting on January 1, 2010.

Who It Affects

• Employers in Alabama that hire unemployed persons (or those whose unemployment benefits have expired) and who keep them employed for 12 months; they would be able to claim a 50% deduction against Alabama income tax.
• Owners of qualified employers that are pass-through entities taxed under Sub-chapters S or K of the Internal Revenue Code; they would share the deduction on a pro rata basis.

Key Provisions

• Establishes a 50% Alabama income tax deduction for employers creating new jobs for unemployed persons.
• Deduction applies to the taxable income of each qualifying employee who was unemployed at hire and retained for 12 months, with certification by the local employment agency.
• Deduction may be claimed in a single tax year and after the employee has been continuously employed for 12 months; it is not refundable or transferable and is claimed against Chapter 18, Title 40 taxes.
• Available on a pro rata basis to owners of qualified employers taxed as pass-through entities under Sub-chapters S or K of the Internal Revenue Code.
• The Department of Revenue may adopt rules to implement the act; the act is severable and becomes effective for tax years beginning January 1, 2010.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation